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The Electricity Governance Initiative: Findings of The Kyrgyz Governance Assessment

The Electricity Governance Initiative: Findings of The Kyrgyz Governance Assessment. Nurzat Abdyrasulova, Executive Director, UNISON www.unison.kg. Public Foundation UNISON. Civic Environmental Foundation UNISON.

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The Electricity Governance Initiative: Findings of The Kyrgyz Governance Assessment

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  1. The Electricity Governance Initiative: Findings of The Kyrgyz Governance Assessment Nurzat Abdyrasulova, Executive Director, UNISON www.unison.kg

  2. Public Foundation UNISON Civic Environmental Foundation UNISON • Non governmental non for profit environmental organization acting on national and international level • Has been established in 2002 in Bishkek • It has main two target areas of activities: • Sustainable Energy development& Climate Change (energy efficiency, energy saving, RES promotion, EGI and Climate advocacy); • Environmental Quality Improvement (eco-education, public awareness, POPs elimination, eco-tourism development, eco-sanitation). • UNISON fulfill international events and information campaigns

  3. Energy Sector Energy is one of the most socially and politically sensitive issues in Kyrgyzstan with significant impact on country economy. 99% of the population are connected to the electricitygrid Electricity infrastructure has been established 40 years ago on the base of the hydropower cascade of the electricity stations - existing capacity is 2950 MWh and 730 MWh from TPP

  4. Current state -TPES share Source: International Energy Agency, 2003

  5. Current state -FEC by economy sector Source: International Energy Agency, 2003

  6. EGI Research • 14 indicators on Political Process and 17 on Regulatory process has been selected as *priority* indicators for pilot research in Kyrgyzstan • Restructuring and privatization process of the Energy Sector has been the main themes of the research

  7. Research Content

  8. Energy Governance in Kyrgyzstan is closed sector, with lack of good governance principles, such as TRANSPARENCY, ACCOUNTABILITY, OPENNESS

  9. Major Findings – Policy Process • Financial reports of the Implementation Agency are not available; • There is no public participation during the decision making and no procedures of the alternative opinion consideration; • No clear jurisdiction of the organization forms of the Energy Companies: in one hand Sate owns 90% of the share, in other hand juridically they are Join Stock companies accountable to Board of Directors.

  10. Regulation Procedures major finding • There is distinguished Regulator Body but the key factor - independence is not covered • Written norms exists but practical implementation is weak (e.g. licensing, appeal procedures, quality of service providing) • There is unclear tariff policy and no well defined tariff methodology • No public hearings and participation on tariffs settings

  11. Environmental and Social Aspects • Environmental security is declared as a first priority of the country policy, but economic interest prevail • Environmental questions in the policy reform is considered and well reflected but practical implementation in minor • Very weak public participation and information about ESIA of energy projects

  12. BUILDING PUBLIC CONFIDENCE THROUGH TRANSPARENCY RECOMENDATIONS • Declaration that there will be an independent regulatory commission • Formation of a Working Group to develop immediate and long term measures for protecting the public interest.   • Formation of a reference group to enhance transparency and public confidence.

  13. Immediate actions • Develop a credible and published set of proposed tariff methodologies • Revise and reissue sector Licenses and develop Performance Agreements • Develop a set of procedures for transparent selection of private service providers • Develop a set of procedures for the Regulatory Department that insures public access to documents • Develop a set of procedures to post annual reports on Ministry websites • Develop a set of procedures for the mandatory publication of feasibility studies and reports

  14. Longer term actions • Review of legal and operational frameworks to identify gaps to be addressed for the sustainable development of the energy sector. A broad set of governance recommendations is outlined in the EGI Assessment Report. • Development of a roadmap for the establishment of an independent regulatory commission • Define the role of the independent regulatory commission in the development of a regional electricity market (including export pricing and security of supply)

  15. Thank you for attention! nurzat@unison.kg www.unison.kg

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